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Ethereum has seen a 15% decline since hitting its recent high of $2,729 last Friday, leaving analysts and investors frustrated with the price action. Many expected the uptrend to continue, but Ethereum struggled to maintain its bullish momentum.
Concerns are growing as some market observers predict a deeper decline, which could fall to a yearly low around $2,150 if the current support level fails to hold. This has reignited fear and uncertainty in the market as Ethereum price sends mixed signals.
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The recent decline has shaken confidence and market participants are eagerly awaiting clear direction. Analysts are closely watching Ethereum’s next move and wondering if it can reclaim support levels to resume an upward trajectory.
The next few days are expected to be crucial for Ethereum price action, with investors bracing for increased volatility in response to these changing market conditions.
Crucial Ethereum Testing Helpline
Ethereum is currently trading at a critical juncture that could define its direction over the coming week. Price action over the next few days is expected to be crucial for Ethereum and the entire altcoin market. Analysts are closely watching whether ETH can maintain its strength as the second largest cryptocurrency by market capitalization. Failure to sustain price above key support levels could signal a broader market decline.
Analysts and investors are eagerly awaiting a recovery in Ethereum as it hovers above a crucial support line that could be the launching pad for a rally to new highs. One of the leading analysts, Carl Runefelt, recently shared his thoughts on X, highlighting the current trendline supporting the price of ETH.
In his technical analysis, Runefelt warns that the price could drop significantly if Ethereum fails to maintain this trendline. If the price breaks this support, it identifies $2,150 as the next potential target.
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A fall to these levels would likely shake many investors who expect continued bullishness in the coming weeks. If ETH loses this key support, it could lead to uncertainty and increased volatility. This fall would keep market participants in suspense while waiting for the next move.
ETH Price Action Details
Ethereum (ETH) is trading at $2,350 after failing to set a high above $2,820. This recent price action disappointed the bulls as ETH lost crucial support levels including the 4-hour 200 exponential moving average (EMA) at $2,542 and the simple moving average (MA) at $2,466 .
These indicators are essential for determining short-term trends, and their loss as support has sparked concerns about further downside risk.
For the bulls to regain momentum, ETH must move above the 200 4-hour EMA and the 4-hour MA and successfully hold these levels as support. The recovery of these indicators would signal renewed strength and pave the way for another attempt to increase prices.
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However, a deeper correction is likely if Ethereum fails to regain these levels. Key support around $2,100 becomes the next target, with the possibility of even lower prices. Investors are closely monitoring these levels as the next few days will be critical in determining whether ETH can recover or continue its downtrend.
Featured image of Dall-E, chart by TradingView